NYSE:GPK

Stock Analysis Report

Graphic Packaging Holding

Executive Summary

Graphic Packaging Holding Company, together with its subsidiaries, provides paper-based packaging solutions to food, beverage, foodservice, and other consumer products companies.

Snowflake

Fundamentals

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Graphic Packaging Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.4%

GPK

2.6%

US Packaging

0.07%

US Market


1 Year Return

45.4%

GPK

18.6%

US Packaging

8.9%

US Market

Return vs Industry: GPK exceeded the US Packaging industry which returned 18.6% over the past year.

Return vs Market: GPK exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

GPKIndustryMarket
7 Day5.4%2.6%0.07%
30 Day8.0%2.4%-0.3%
90 Day2.1%-2.4%-1.6%
1 Year48.9%45.4%21.5%18.6%11.3%8.9%
3 Year31.8%23.3%27.1%19.1%46.3%36.8%
5 Year46.3%33.4%47.5%30.2%62.1%44.3%

Price Volatility Vs. Market

How volatile is Graphic Packaging Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Graphic Packaging Holding undervalued compared to its fair value and its price relative to the market?

17.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GPK ($15.34) is trading above our estimate of fair value ($5.87)

Significantly Below Fair Value: GPK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GPK is poor value based on its PE Ratio (17.6x) compared to the Packaging industry average (17.6x).

PE vs Market: GPK is good value based on its PE Ratio (17.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GPK is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: GPK is good value based on its PB Ratio (2.8x) compared to the US Packaging industry average (3.5x).


Next Steps

Future Growth

How is Graphic Packaging Holding forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPK's forecast earnings growth (7.4% per year) is above the savings rate (2.7%).

Earnings vs Market: GPK's earnings (7.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: GPK's earnings are forecast to grow, but not significantly.

Revenue vs Market: GPK's revenue (2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: GPK's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GPK's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Graphic Packaging Holding performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GPK's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: GPK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GPK had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Packaging industry average (-1.4%).


Return on Equity

High ROE: GPK's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: GPK's Return on Assets is below or equal to the Packaging industry average last year.


Return on Capital Employed

ROCE Improving: GPK's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Graphic Packaging Holding's financial position?


Financial Position Analysis

Short Term Liabilities: GPK's short term assets ($1.9B) exceeds its short term liabilities ($1.1B)

Long Term Liabilities: GPK's short term assets (1.9B) do not cover its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: GPK's debt to equity ratio (125.5%) is considered high

Reducing Debt: GPK's debt to equity ratio has reduced from 217.5% to 125.5% over the past 5 years.

Debt Coverage: GPK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: GPK's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: GPK has a high level of physical assets or inventory.

Debt Coverage by Assets: GPK's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Graphic Packaging Holding's current dividend yield, its reliability and sustainability?

1.96%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GPK's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GPK's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Whilst dividend payments have been stable, GPK has been paying a dividend for less than 10 years.

Growing Dividend: GPK's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.4%), GPK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GPK's dividends in 3 years are forecast to be well covered by earnings (29.8% payout ratio).


Next Steps

Management

What is the CEO of Graphic Packaging Holding's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Mike Doss (53yo)

3.8yrs

Tenure

US$7,264,270

Compensation

Mr. Michael P. Doss, also known as Mike, has been the Chief Executive Officer and President of Graphic Packaging Holding Company since January 1, 2016 and May 20, 2015 respectively. Mr. Doss has been Chief ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD7.26M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: GPK's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

61yo

Average Age

Experienced Board: GPK's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$183,75028 Feb 19
Robert Hagemann
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$12.25
BuyUS$264,69325 Oct 18
Larry Venturelli
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$10.59

Ownership Breakdown


Management Team

  • Debbie Frank (59yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0yrs
  • Lauren Tashma (53yo)

    Executive VP

    • Tenure: 5.7yrs
    • Compensation: US$1.73m
  • Mike Doss (53yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$7.26m
  • Paul McCann

    Senior Vice President of Supply Chain

    • Tenure: 1.2yrs
  • Joe Yost (52yo)

    Executive VP & President of Americas

    • Tenure: 10.8yrs
    • Compensation: US$2.13m
  • Steve Scherger (55yo)

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$2.68m
  • Hilde Van Moeseke (49yo)

    Senior VP & President of EMEA

    • Tenure: 2.3yrs
  • Mike Farrell (52yo)

    Executive Vice President of Mills Division

    • Tenure: 1.8yrs
  • Stacey Panayiotou

    Executive Vice President of Human Resources

    • Tenure: 0.5yrs
  • Melanie Skijus

    Vice President of Investor Relations

    • Tenure: 0.8yrs

Board Members

  • Laurie Brlas (61yo)

    Independent Director

    • Tenure: 0.8yrs
  • Dean Scarborough (64yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$38.77k
  • Bob Hagemann (62yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$212.52k
  • Phil Martens (59yo)

    Independent Chairman

    • Tenure: 3.4yrs
    • Compensation: US$350.00k
  • David Campbell (69yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$200.00k
  • Lynn Wentworth (61yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$220.00k
  • Paul Carrico (68yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$200.00k
  • Larry Venturelli (59yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$200.00k
  • Mike Doss (53yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$7.26m

Company Information

Graphic Packaging Holding Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Graphic Packaging Holding Company
  • Ticker: GPK
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: US$4.452b
  • Shares outstanding: 290.24m
  • Website: https://www.graphicpkg.com

Number of Employees


Location

  • Graphic Packaging Holding Company
  • 1500 Riveredge Parkway
  • Suite 100
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPKNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2003
4W8DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2003

Biography

Graphic Packaging Holding Company, together with its subsidiaries, provides paper-based packaging solutions to food, beverage, foodservice, and other consumer products companies. It operates through three  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:01
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.